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Developer Allan Zeman is counting on an upscale clientele to claim the choice properties at Phuket’s Andara Resort & Residences.
As job losses and pay cuts become increasingly common across the world it is heartening to see that some property projects are doing well. One of these is Phuket’s Andara Resort & Residences, being developed by Hong Kong tycoon Allan Zeman and set to open its doors in December this year.
The project’s strengths include its prime location on Kamala Beach on the island’s west coast. Regardless of what many will say, said Mr Zeman, the beaches on the western side of the island are better than those on the eastern half. Good shops and restaurants are also just minutes away from the oceanfront location.
The high-end development is also not too big, which should appeal to wealthy buyers. There are just 26 four- to six-bedroom villas, with even the smallest a huge 1,375 square metres. The biggest is 2,100 square metres. The 37 three- and four-bedroom residence apartments are also very spacious, ranging from 311 to 896 square metres.
The last villas will be completed this month, the apartments and all resort facilities by November.
The biggest drawing card is Mr Zeman himself because of the fame he won in driving up the development of the popular Hong Kong entertainment district Lan Kwai Fong. This makes it easy for him to attract buyers in the former British Crown colony who trust his astute touch.
Construction of lowrise condominium residences is well under way
Mr Zeman says the development is very personal to him because the concept sprang from his holiday home in Phuket called Chandara. When visitors saw the huge Thai-inspired villa they wanted their own, and this led to Andara’s three-phase development.
“I love my home in Phuket and so I wanted to be able to share the experience of living in paradise with other like-minded people.”
In keeping with the concept that everything one owns should have the potential to generate income if need be, there is an open option for villa and apartment owners to join the rental pool.
Jonathan James Gascoyne, Andara’s sales and marketing director, noted that the rental rates range from US$3,000 (106,410 baht) a night for a villa and US$1,250 for an apartment. These steep rates match the buyer and visitor profile – mostly successful businessmen and celebrities.
“So these types of visitors exist and they are very strong, but of course the important thing when you are making a project is that you don’t produce one that is identical to something else or that is overwhelming. So 37 apartments is a realistic number to offer to the high end.
“The same with the villas. We have 26, and they have ample space around them. But of course what we don’t want to do is overextend ourselves and have too many villas and not be able to sell them.”
The trend of villa and condominium owners pitching for a share of the famous Thai island’s hospitality market is gaining momentum and will have stronger impact in the years to come, said Mr Zeman. Those who succeed are the ones who ensure visitors get as as good a service as hotels provide along wit the larger living space.
Perhaps with this in mind Andara brought in Klaus Rienhard Rauter as general manager. The Austrian has garnered extensive experience in hotel management both in Thailand and throughout southeast Asia. Previous employers including Banyan Tree Phuket, Six Senses and Astudo Hotels & Resorts.
He is bullish about the success of distinctive resorts such as Andara, although he baked off from using the word boutique, saying it much abused, with even small, nondescript places placing a sign on the door proclaiming they are one of this innovative breed.
However, he noted, those that are truly boutique do offer visitors something different from the standard hotel room in Bangkok where one knows before hand what the layout would be like and where everything is going to be.
“Right now [Thai property developers] cover their own culture, so you see boutique hotels coming up with a Thai influence, Thai furniture, Thai decoration, Thai heart and soul, very deep down – yes this is the way to go in my opinion.”
Mr Rauter said Mr Zeman’s philosophy that in business one should leave something behind on the table for the others to pick up will help this new project
“If the others who do business with him can make money, it makes him happy.”
Mr Gascoyne said times are indeed difficult, but pointed out that investing in property is a medium term proposition of around 10-15 years and for that reason investors should take a longer perspective.
[relatedposts]The Hong Kong property market clearly illustrates this. Although values plunged by 25% in 2008 this in fact only wiped out the 25% appreciation in 2007. Since the start of the millennium property owners in Honk Kong have seen as much as a 300 to 350% return in capital, which means they are doing very well irrespective of the 25% loss last year.
However, Mr Gascoyne admitted that he knows of developers suffering right now in Phuket, although he refused to name them.
“It’s very sad, I don’t like to see any company suffer – whether it’s a family-run business or a large corporation. In the current climate we are in nobody should be ashamed of what’s going on.
“This is something nobody could have foreseen.”
Mr Rauter is optimistic that the situation will ease by the end of the year because banks will eventually have to give out loans again as tis is how they make money.
“When this happens will depend on the overall global situation, but I don’t think it will be later than the fourth quarter of 2010 that the economic stimulus plan will kick in and confidence is restored,” said Mr Rauter.